Diamond Model

Description

Flashcards on Diamond Model, created by Peter Hazlett on 19/10/2018.
Peter Hazlett
Flashcards by Peter Hazlett, updated more than 1 year ago
Peter Hazlett
Created by Peter Hazlett about 7 years ago
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Resource summary

Question Answer
Population
Technology
Real Interest Rate
Wage per unit of effective worker
Individual Utility Function
Income (Budget Constraint)
Consumption in Period 1
Savings Rate
Dynamics of Capital
Dynamics of Capital per unit of effective labor
Dynamics of Capital per unit of effective labor with a Logarithmic Utility Function and Cobb-Douglas Production Function
Dynamic Inefficiency Whenever f'(k)=r>n=f'(k_GR), the economy is dynamically inefficient.
Steady-State Value of Capital per unit of effective worker (Log U and CD PF)
f'(k*) (Log U and CD PF)
Golden Rule (Log U and CD PF)
Comparing f'(k*) with f'(k_GR) (Log U and CD PF)
Introducing Government Into Dynamics of Capital per unit of effective labor (Log U and CD PF)
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